Bombay High Court Allows Writ Petition Challenging EPF Order Due to Non-Functional Appellate Tribunal. Alternate remedy under Section 7I of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 not a bar when tribunal is vacant.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioner, HVPM's Degree College of Physical Education, Amravati, through its Secretary, filed a writ petition under Article 226 of the Constitution before the Bombay High Court, Nagpur Bench, challenging an order dated 26.10.2016 passed by the Assistant Commissioner of Provident Fund, Akola (Respondent 1). The impugned order was passed under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, imposing damages under Section 14B and interest under Section 7Q of the Act. The petitioner contended that the order was arbitrary and without jurisdiction. The respondent raised a preliminary objection that the petitioner had an alternate statutory remedy of appeal under Section 7I of the Act before the Appellate Tribunal. The petitioner, in paragraph 25 of the petition, argued that the Appellate Tribunal at New Delhi was vacant and no presiding officer had been appointed, rendering the remedy ineffective. The Court, after hearing the parties, noted the preliminary objection and the petitioner's response. The Court observed that since the appellate tribunal was non-functional, the alternate remedy could not be considered efficacious, and thus the writ petition was maintainable. The Court proceeded to admit the petition and issued rule, making it returnable forthwith. The judgment was reserved on 27.08.2018 and pronounced on 11.09.2018.

Headnote

A) Employees' Provident Funds - Maintainability of Writ Petition - Alternate Remedy - Section 7I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 - The petitioner challenged an order under Section 7A imposing damages under Section 14B and interest under Section 7Q. The respondent raised a preliminary objection regarding alternate remedy of appeal under Section 7I. The Court held that since the appellate tribunal at New Delhi was vacant and no presiding officer appointed, the remedy was not efficacious, and the writ petition was maintainable. (Paras 4-5)

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Issue of Consideration

Whether the writ petition is maintainable despite existence of statutory appeal under Section 7I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, when the appellate tribunal is non-functional.

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Final Decision

The Court overruled the preliminary objection and admitted the writ petition. Rule was made returnable forthwith by consent of the learned counsels for the parties. The judgment was reserved on 27.08.2018 and pronounced on 11.09.2018.

Law Points

  • Alternate remedy not a bar when appellate tribunal is non-functional
  • Section 7A EPF Act
  • Section 14B EPF Act
  • Section 7Q EPF Act
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Case Details

2018 LawText (BOM) (09) 101

WRIT PETITION NO.3424 OF 2017

2018-09-11

ROHIT B. DEO, J.

Shri K.H. Deshpande, Senior Counsel holding for Shri A.J. Deshpande, Advocate for Petitioner; Shri H.N. Verma, Advocate for Respondent 1; Shri N.S. Rao, AGP for Respondents 2 & 3

HVPM's Degree College of Physical Education, Amravati through its Secretary Shri Ravindra s/o Gangadhar Khandekar

Assistant Commissioner of Provident Fund, Akola; The Government of Maharashtra, Department of Higher Education; The Government of Maharashtra, Department of Social Justice and Special Assistance

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Nature of Litigation

Writ petition under Article 226 challenging an order imposing damages and interest under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Remedy Sought

Quashing of order dated 26.10.2016 passed by the Assistant Commissioner of Provident Fund under Section 7A of the EPF Act.

Filing Reason

The petitioner challenged the order imposing damages under Section 14B and interest under Section 7Q of the EPF Act, and contended that the alternate remedy of appeal under Section 7I was not efficacious as the appellate tribunal was non-functional.

Issues

Whether the writ petition is maintainable despite existence of statutory appeal under Section 7I of the EPF Act when the appellate tribunal is non-functional.

Submissions/Arguments

Respondent 1 raised preliminary objection that petitioner has alternate remedy of appeal under Section 7I of the Act. Petitioner argued that the appellate tribunal at New Delhi is vacant and no presiding officer appointed, hence remedy is not efficacious.

Ratio Decidendi

The existence of an alternate statutory remedy is not an absolute bar to the maintainability of a writ petition when the appellate tribunal is non-functional and the remedy is not efficacious.

Judgment Excerpts

Paragraph 25 of the petition reads thus: ... the Tribunal which is situated at New Delhi is vacant and no presiding officer has been appointed as yet. As such the remedy provided under section 7I cannot be termed as an alternate remedy.

Procedural History

The petitioner filed Writ Petition No.3424 of 2017 before the Bombay High Court, Nagpur Bench, challenging an order dated 26.10.2016 passed by the Assistant Commissioner of Provident Fund. The respondent raised a preliminary objection regarding alternate remedy. The Court heard the parties on the preliminary issue and admitted the petition.

Acts & Sections

  • Employees' Provident Funds and Miscellaneous Provisions Act, 1952: 7A, 14B, 7Q, 7I
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High Court Bombay High Court Allows Writ Petition Challenging EPF Order Due to Non-Functional Appellate Tribunal. Alternate remedy under Section 7I of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 not a bar when tribunal is vacant.
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